Brands, retailers cautious about the price hike
22 April 2022, Mumbai:
Retailers and apparel brands including Lifestyle, Reliance, Raymond, and Woodland have decided to either hold product prices or opt for only marginal hikes, despite a sharp rise in inputs costs.
Devajaran Iyer, the CEO, of Lifestyle International, says, the company does not plan to hike product prices for six months at least as it could affect the current positive consumption trend.
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Retailers fear any significant hike in prices may impact demand. India's largest retailer, Reliance Retail, says, a price hike may jeopardize demand generation when the market is improving.
Anil Agarwal, Group CFO, Raymond informs, that his brand will look at cost efficiencies and reducing discounting instead of direct price hikes.
The profitability of the branded apparel segment has been under pressure for over a year due to a sharp rise in raw material costs, container shortages, and a significant increase in cotton prices.
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While most FMCGs and quick service restaurants have increased prices, clothing and lifestyle firms adopted a more cautious approach.
For instance, Harikirat Singh, Managing Director, Woodland, says, his brand does not plan to increase prices for the next few months despite raw material prices surging by almost 25 percent in the last 3-4 months.
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